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Both sides really need to know what they are doing, and that depends on the jurisdiction.

For example, if you were a UK resident 'employed' by a foreign company you would likely still be deemed a "worker", not "self-employed", subject to minimum wage and statutory annual leave unless the contract is very specific on paper and in facts, and it is unlikely that the employer really wants a "self-employed" contractor.

"subject to minimum wage and statutory annual leave" - even for overseas work? The article specifically covers international hires.
"In the UK" as in "the person works in the UK". Edited my previous comment.

This is indeed very dependent on the jurisdiction and that's why both employers and employees need to understand the law on both sides.

No, it doesn’t need to be the case that you become a self employed contractor.